But what does $340k get you in your area? I’d get a one bed coop in a fairy safe nabe with an hour commute. No thank you.
duplicate
if (net, after-tax) mortgage interest, taxes and basic upkeep costs are less than rent AND there is a say 80% chance of staying put for 5+ years, buy. if not, rent.
as for other costs, generally the cost to enter and exit the house in 5+ years as an owner is offset by the cost to move as a renter and rent increases over 5+ years.
the calculation is a bit different between Canada and the US as Canadian mortgage rates are lower, Canadian property taxes are lower, Canadian mortgage interest is not deductible but Canadians are not taxed at all on capital gains but can use any capital losses against other capital losses. the rule of thumb above is still relevant though.
About 2,500 sq ft (that’s like 80 dozen sq meters for non patriots), 3-4 bedrooms, 2-3 bathrooms, 2 car garage, great school system, and zero crime.
Where is this utopia you speak of?
Sounds like a lot of cleaning! 
dont matter what you get. your choices in this scenario is to pay 2k rent or the purchase price where you decide to no longer rent for 2k. so rent prices are sticky in this scenario.
That what my wife is for.
Just kidding. We hire illegals.
On the PUBG map. Speaking of which, I haven’t been on since I started that thread. Maybe tonight…
Really? Doesn’t matter if you hate where you live?
Of course you do
Picked up a chicken dinner last night. Let me know if you want to roll a duo or squad.
i dont mean it that way. i mean we can scale this shit up so you can relate. say the scenario is 5k rent, i would choose to buy instead of rent at a purchase price of 840k.
Expect to spend the amount of your mortgage on maintenance and modifications in any given year.
id never invite MLA to a party. hed make me feel bad for buying the new expensive tostitos instead of the store brand which is exactly the same
fake news!
The primary personal factor in your buy vs rent decision is how long you intend to live in that house. When you buy a house, you will incur significant one time costs. So longer stays favor buying. Other variables, like taxes, maintenance costs, and others are generally known to a large extent and can be easily solved in your model.
The break even period is dependent on area, as different locations have different buy/rent ratios. However, this is also derived from the market. That is, this ratio is objective and not subject to personal circumstances.
Nerdy’s question is weird, as it seems to imply that different people use different cost methodologies. This does not seem rational, as other than length of stay, all other variables are the same for everyone.
Regarding future expected price appreciation, I don’t think you can reliably predict future prices and liquidity. You should just assume some modest growth assumption and not assume you can time the market.
NY Times has a good buy/rent calculator that roughly agrees with my model. It is probably not adjusted for the new taxes though.
I don’t know why the price of the house is a determining factor in whether you should rent or buy. Like, “I’ll rent a 200k house, but I’d rather buy a $225k house.”
As others have said, the factors you should look at are things such as how long you plan to stay in the house, potential price appreciation, the costs of repairs and maintenance, etc. But just price alone wouldn’t make me change my mind.
Also, in real life, I don’t see a lot of 15,000 sqft multi-million dollar homes available for rent.
you can always buy and rent it out. the trick with buying real estate is you never sell. you refinance, and rent out. also you’d be surprised. i know the rental market for the msot expensive real estate in los angeles. and believe me, people are willing to pay hundreds of thousands in rent and the yield on the property is modest at 2% to 3%.
my total cost of ownership < rent which is sweet